Good Morning. Welcome to The Wire’s daily news roundup. Each day, our staff gathers the top China business, finance, and economics headlines from a selection of the world’s leading news organizations.
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The Wall Street Journal
- China Signals Spying Fears Amid Probe of Consulting Firms — State media reports follow speculation that due-diligence and business-intelligence firms are crackdown target.
- Canada Expels Chinese Diplomat Following Alleged Threat to Conservative Lawmaker — China vows to retaliate and denies allegation that Beijing interferes in Canadian affairs.
- China Expels Canadian Diplomat in Retaliatory Move — Decision comes after Ottawa expelled Chinese diplomat who allegedly planned to pressure Canadian lawmaker through relatives in Hong Kong.
- Microsoft’s LinkedIn Closes China App as It Cuts More Than 700 Jobs Worldwide — Professional networking service, the latest tech company to trim its global workforce, makes further retreat from China.
- EU Targets Eight Chinese Companies in Russia Sanctions Push — Bloc looks to broaden sanctions on businesses that help Moscow fight Ukraine.
- China’s New Hot Stocks Are State-Owned Banks and Brokers — The stocks appear to play catch-up with rally among firms backed by government.
- Underwhelming Chinese Stock Markets Show Concern Over Recovery — China’s stocks have underperformed this year as questions linger on durability of economic rebound.
- Chinese Exports Cool in Latest Warning Sign on Global Trade — After three years of export-driven growth, Beijing is hoping domestic consumers can drive the next stage of the recovery.
- China Finally Has a Rival as the World’s Factory Floor — Companies look to find a backup for manufacturing and India is making its case.
The Financial Times
- China raids multiple offices of international consultancy Capvision — State media accuses group of gleaning sensitive and secret information from experts.
- Can Volkswagen win back China? — The German carmaker has lost its top spot in its most important market as homegrown rivals grab EV market share.
- Canada expels Chinese diplomat for allegedly targeting lawmaker — Foreign minister says Ottawa ‘will not tolerate any form of foreign interference’.
- China expels Canadian diplomat in retaliatory move as tensions deepen — Beijing’s move comes after Ottawa’s expulsion of a Chinese diplomat for allegedly targeting a Canadian lawmaker.
- Weak Chinese demand pushes iron ore prices to five-month low — A 23% fall in prices from recent high adds to concern over strength of China’s economic recovery.
- China’s imports fall in April as clouds gather for economic outlook — Slowing export momentum after unexpected March surge points to uneven recovery.
- LinkedIn to close China jobs service and cites strong competition — InCareer app also faced scrutiny from regulators over foreign companies being able to communicate with Chinese workers.
- China’s local governments look to Middle Eastern funds for investment — Cash-strapped authorities hope to stimulate economic development post-pandemic.
- Chinese investment in Europe falls as watchdogs increase scrutiny — Regulators stymied 10 out of 16 proposed Chinese deals in Europe’s tech and infrastructure sector, according to study.
- Sunak faces Tory dissent over China policy and housing — Iain Duncan Smith attacks PM’s ‘shameful’ decision to send investment minister to Hong Kong.
- LinkedIn China: exit saves owner Microsoft political grief — LinkedIn’s withdrawal from China should benefit Tencent’s WeChat and smaller rivals such as Zhaopin and Maimai.
The New York Times
- LinkedIn Will Cut Over 700 Jobs Worldwide and Shut Its China App — Microsoft, LinkedIn’s owner, had already pulled the flagship networking site from China in 2021, leaving only a stripped-down app that catered to job seekers.
- Hong Kong Wants More Tourists, but Mostly ‘Good Quality’ Ones, Please — The return of budget tour groups from mainland China is sparking frustrations — and a dose of snobbery — in a city starved for business.
- Capvision, a Consulting Firm, is Raided by Chinese Authorities — The consulting firm Capvision Partners is the latest to be raided in the name of national security, sending a chill through the foreign business community.
- China Retaliates After Canada Expels Diplomat Amid Influence Concerns — China ordered a Canadian diplomat in Shanghai to leave after Ottawa expelled a Chinese official who had been accused of gathering information on a Canadian lawmaker.
- Battery Factories Are Driving Chinese Investment in Europe — Although China is investing less in Europe overall, Chinese battery producers are building factories to meet the demands of the region’s growing need for electric vehicles.
Caixin
- China’s AI Charge Part 3: Short on Chips and Talent — Chinese companies have been unable to get their hands on some of the more advanced data-center GPUs due to U.S. government restrictions.
- Chinese Battery Makers Grab More Share Overseas — CATL and BYD lead expansion abroad as Chinese companies take market share outside China away from South Korean and Japanese rivals.
- China’s Gold Buying Spree Stretches Into Sixth Straight Month — People’s Bank of China adds 8.09 tons in April, bringing stockpile to 2,076 tons, as global central banks gird against inflation and geopolitical risks.
South China Morning Post
- Chinese tycoon Zhang Jin, who owns Fortune Global 500 company, arrested for alleged illegal fundraising worth US$3 billion — Zhang Jin, the billionaire owner of commodities giant Cedar Holdings, has been arrested for illegal fundraising estimated at about 20 billion yuan (US$2.9 billion), according to officials and mainland Chinese media reports.
- First senior UK official to visit Hong Kong in 5 years meets CK Hutchison’s Victor Li on trip to boost investment ties, reinforce engagement efforts — In an opinion piece for the Post, trade minister Dominic Johnson says he will meet leading investors and government officials to capitalise on Hong Kong’s commercial success.
- Florida’s Ron DeSantis signs bills limiting Chinese land ownership, TikTok at schools — Citing a threat from China, the governor moved to curb real estate purchases by Chinese nationals and ban Chinese apps from school and government servers.
Nikkei Asia
- Shein faces U.S. scrutiny over forced labor in China crackdown — Congressional report alleges fast-fashion vendor uses cotton from Xinjiang.
- China-Canada ties sour over tit-for-tat diplomatic expulsions — Beijing retaliates for Ottawa declaring Chinese envoy persona non grata.
- China raids Capvision’s Suzhou office in consultancy crackdown — Another firm with U.S. ties investigated as expanded counterespionage law looms.
Bloomberg
- Seoul Sees US Extending China Export Waivers for its Chipmakers — South Korea expects Washington to extend a waiver on the shipment of advanced chipmaking equipment to China, allowing SK Hynix Inc. and Samsung Electronics Co. to get the gear they need to maintain operations in the world’s second-biggest economy.
- Scholz Says China Increasingly Rival Rather Than Partner for EU — German Chancellor Olaf Scholz urged the European Union to reduce its reliance on China, accusing the government in Beijing of increasingly acting as a rival and competitor rather than a partner.
- China Starts Anti-Spy Campaign, With Consulting Firms Targeted — China has launched a nationwide anti-espionage crackdown on consulting firms, according to state media, accusing one global company of leaking state secrets and having ties with foreign intelligence agencies.
- Chinese Investment in Europe Drops, Except for EV-Batteries — Chinese investment in Europe plunged by more than a fifth last year to a decade low as a shift toward greenfield investments in electric-vehicle batteries only partially offset a steep decline in mergers and acquisitions, a survey showed.
Reuters
- Australian journalist nears 1,000 days in detention in China on state secrets charge — Politicians, business people and friends of Australian journalist Cheng Lei, who will reach 1,000 days of detention in Beijing on Wednesday, called for a faster resolution of her case as diplomatic ties between the trade partners stabilise.
- China consultancy crackdown sends jitters across foreign business — Overseas business lobbies in China said on Tuesday they were unnerved by a sweeping crackdown on consultancy and due diligence firms that is damaging investor confidence in the world’s second-largest economy.
- British ex-premier Truss to visit Taiwan next week — Former British prime minister Liz Truss will visit Taiwan next week and meet senior members of the government, her office said on Tuesday, as she makes a case for Western democracies to toughen their stance towards China.
Other Publications
- The Globe and Mail: Ottawa expels Chinese diplomat Zhao Wei over foreign interference — Mr. Zhao was part of efforts by the Chinese government to target Conservative MP Michael Chong and his family after his work in spearheading a parliamentary motion that declared Beijing’s treatment of the Uyghurs to constitute genocide.
- Toronto Star: Canada set to name foreign labs, universities that pose risk to national security — Leading universities say they would avoid working with the organizations altogether — despite potential $100M loss in annual funding from foreign partners.
- Foreign Affairs: How China’s Echo Chamber Threatens Taiwan — Xi Jinping Has Unleashed Hawkish Forces He Can’t Control. By Tong Zhao
- Foreign Policy: China’s Wolf Warrior Ambassador Is a Hit in Beijing, Not Paris — Lu Shaye keeps alienating his foreign hosts.
- MERICS: EV battery investments cushion drop to decade low: Chinese FDI in Europe 2022 Update — Chinese FDI in Europe reached a decade low of just EUR 7.9 billion in 2022, down 22 percent compared to 2021.
